ICSM News for June: with listings of who has gone bust by industry sector in May and updates on firms on the brink of collapse

Hello and Welcome to our June Newsletter

To paraphrase the line from the film Jaws - just as we thought it was safe to go back into the water on 21st June it now seems it won't be as the rules may be changed again.
Without doubt the pandemic is the biggest crisis for British business since the outbreak of World War 2 in 1939. Yes, we've had recessions in the 70s, 80s and 90s, plus the Credit Crunch in 2008, but to see viable firms have their markets taken away from them in the last 16 months is a hammer blow.
Of course business will bounce back but many won't and that's where ICSM can help as through our thousands of members we discover who isn't paying their invoices and who may well go bust when all the grants and furlough scheme ends.
All businesses that can see a way through the mayhem and go on to prosper be they must be on their guard. There are firms out there run by some desperate directors who will do anything to save their enterprise - including delaying payments to suppliers. Make sure you don't fall for the modern day equivalent of 'the cheque's in the post.'
If there's any concerns over a customer keep ICSM informed and do a credit check using our data - it could save you a fortune. And if a client is refusing to pay then ICSM's debt collection service is a highly effective way to secure payment. For those small written off invoices you've given up on from last year then use our free micro debt recovery service - it has an 80% success rate and costs you nothing.
Our news section follows all the main issues of the day from a wide variety of industry sectors - do check out our website for more as we chart these 'interesting times.' And as always we list the insolvencies in Runners and Riders by breaking the list into different sectors representing some of the key ICSM membership groups.

Best wishes
Ian Carrotte
Proprietor of ICSM Credit
For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com




ICSM Credit, the Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR

Not a member? Normally you can join for less than a tank of diesel and protect yourself from late payers but we have a special free temporary membership offer this month. Use our free legal letters to chase unpaid invoices.

For a video on how to send a FREE LEGAL LETTER visit: https://youtu.be/AIycysoFhYo

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Britain’s largest sub-prime money lender on the brink of collapse as echoes of the 2008 Credit Crunch continue

There’s a certain irony that a company that lends to those in financial straits is itself in financial trouble. That’s the situation today for Amigo after the High Court rejected its plan to set aside cash for compensation to victims of miss-selling last week.

The BBC’s Kevin Peachey said: “Amigo, which lends money to those with a poor credit history, has said it faces insolvency without a new plan to cap pay-outs for mis-sold loans. Now Amigo has said it will not appeal against that decision and was, instead, investigating all options - including an alternative plan, or insolvency.”

Ian Carrotte of ICSM whose members keep tracks on struggling companies and bad payers said not only were jobs at stake but also suppliers to Amigo may not get paid.

He said: “Many self-employed people who have struggled to pay bills due to the lockdowns and business shut downs will have taken out loans with Amigo in desperation. With an interest rate of nearly 50% a borrower has to pay nearly double the amount they borrow. It’s insane but the restrictions to business has driven many to borrow on such terms.”

_{How the papers saw the infamous 2008 Credit Crunch}

The firm’s share price collapsed today as administration loomed falling to just 8p. Last month Amigo thought they had found a solution to paying compensation to borrowers who had been given loans they could never afford to repay. The scheme would have channelled money into a separate company which would have protected the main business but with such a tiny turnout to vote on the plan the judge in the High Court rejected the plan in part as it placed restrictions on compensation claims.

Amigo has 150,000 customers but stopped lending last November as looming compensation claims threatened to force the company into making massive pay-outs. The sub-prime market has been bedevilled since the now infamous 2008 Credit Crunch which brought the banking system on both sides of the Atlantic to near collapse. Once it became possible to sue the lender for selling high interest loans to people with no hope of being able to repay the sector has struggled to remain solvent.

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Five years on, the final chapter of the collapse of Polestar is written as PUPL Realisation Ltd, (Polestar UK Print) is dissolved 

There are a lot of people in the printing and allied industries will raise their eyebrows over the news that the last part of the once mighty Polestar empire has been confined to history.

Polestar UK Print which became PUPL Realisation Limited has been wound up as reported by Jo Francis in Print Week, the industry’s main trade publication.

The journalist reported: “Five years’ ago this week, Polestar’s once flagship Sheffield supersite ceased web offset operations, with the entire factory shuttered by 31 May 2016. The web offset and gravure printing group’s messy failure caused huge repercussions for its clients and sent a shockwave across the industry as publishers scrambled to find alternative printing arrangements – with some work heading to the continent as a result, although the vast majority of it has now been repatriated to the UK.

“The various Polestar companies involved in the group’s multi-site structure, which was further complicated by the pre-pack sale to Proventus in March 2016, are all now dissolved. Polestar had sales of £535m at its peak, although this had fallen to £216.4m in 2014. The group’s 2015 accounts were never filed.”

Ian Carrotte of ICSM has bitter memories of the collapse as it left creditors with a £235m headache in unpaid invoices ahead of the pre-pack with Proventus in 2016. He said: “A large number of companies lost a lot of money when Polestar went down causing untold heart ache for suppliers. It was pretty much one of the biggest players in the business and to collapse in the way it did was devastating. There were question marks at the time over the pre-pack and the subsequent fate of the rump of the company.”

He also said it was a sign of the times as the print industry was under attack from the internet and decline in newspaper and magazine circulations. Since then more players in the business have struggled and gone to the wall as the market shifted from long print runs to shorter digital printing and any firm with major debts will always struggle in a contracting market.

In 2016 PwC attempted to find buyers for the various sections of the group which at the time included the flagship gravure and web offset site at Sheffield, web offset sites in Bicester and Chantry, the sheetfed magazine printer Stones in Banbury, and book and journals printer Wheatons in Exeter.

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Liberty Steel crisis latest: Sajeev Gupta puts more plants up for sale; Bank of England suspected Gupta’s bank in 2019; and Ian Carrotte says collapse is inevitable

The likelihood that Liberty Steel will eventually collapse seemed more likely today after the effective owner businessman Sanjeev Gupta put seven UK steel plants up for sale.

Writing in the Daily Mail this week Lucy White explained the sale was an attempt to pay off a long list of creditors. She reported: “The troubled metals tycoon, who is being investigated by the Serious Fraud Office (SFO), wants to get rid of the giant speciality steel plant in Stocksbridge, South Yorkshire, which employs 762. He will also look to sell plants in West Bromwich and Brinsworth, South Yorkshire, which together employ another 268 workers, as he attempts to hold the core of his business together.”

ICSM’s Ian Carrotte has said previously that Sajeev Gupta’s business empire is built on sand and is likely to collapse with the evidence to support this opinion coming from the Government as they turned down a request for a £170m bailout due to the ‘opaque’ nature of the businesses.

He said: “It’s like a slow-motion car crash. Gupta does not have enough cash flow to service the debts he has accumulated. Liberty Steel used Greensill to factor invoices but they have gone bust so he is desperate. It’s a classic case where a firm is effectively insolvent and they fail to take responsibility for the situation and call in the administrators. The general feeling from outsiders is the administrators will discover things which the owner does not want them to find.”

The BBC reported that Gupta's GFG Group, was probed by the Bank of England in 2019. The Wyelands Bank which is part of his business group is facing possible liquidation, while Liberty Steel’s owner GFG is also facing collapse after the liquidation of its biggest lender, Greensill Capital.

Adding pressure is the inquiry launched by the Serious Fraud Office into aspects of Gupta’s business dealings.

Ian Carrotte said: “At stake is millions of pounds of tax payer cash, thousands of jobs and millions owed to suppliers who are facing disaster if Gupta fails to pay up.”

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More stories: check our website for news on logistics, construction, hospitality, printing and publishing - and much more

PLUS: April’s insolvencies, crypto currency collapse, inflation concerns, and Gwyneth Paltrow’s Goop company could be struck off by Companies House https://www.icsmcredit.com/news/viewpost.php?id=427
PLUS: _{The puzzle of fewer insolvencies in a shrunk Covid-affected economy – what’s behind the figures?} https://www.icsmcredit.com/news/viewpost.php?id=432
PLUS: Printing industry takes another hit as Zanders Paper folds – plus news of more print industry firms in trouble https://www.icsmcredit.com/news/viewpost.php?id=420

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Runners and Riders
Below is a collated list taken from the Government’s London Gazette of various businesses who are experiencing problems in the last few weeks.
We have broken them into different sections to make it easier to see and we have included the company number in each case. 

PRINTING AND ALLIED INDUSTRIES
Administrators Appointed
Monument Paper bag Company Limited (The)    00481099
 
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
ASN Communications Ltd    10976293
AMD comms Limited    12205106
Clarendon Press Gloucestershire Limited    05144567
Datum Colour Print (Hatfield) Limited    04198069
Doublesix Digital Publishing Limited    06429398
Fled Film Limited    10982318
Gorger Film Productions Limited    10408464
JRC Marketing Limited    10230701
KJ Displays Limited    05285566
ML Design Services Limited    09606298
RPW Design Limited    09073948
S.D.A Exhibitions Limited    12175768
The Branding Team Limited    06594483
Wise Panda Media Limited    11393089
Yolo Attire Limited    11217901
 
Liquidators Appointed
& Then Studio Limited    10816310
2G Audio Visual Limited    07747653
Accoil Paper Recycling Limited    08754963
A & H Images Limited    01831837
Blinkfish Design Limited    09269722
Brands Reunited Limited    08905243
BR Communications Services Limited    09719860
Bristol Ethicurean Limited    07963194
Candid Cards Limited    00791495
Capvar Media Limited    08395240
C-Space Limited    11359111
Datum Colour Print (Hatfield) Limited    04198069
Dna Manufacturing Clothing Limited    11398998
DTS Communications Limited    02748749
Editions Craig Leon Limited    05282662
Eddison Books Limited    09855346
Eurotex (Sales) Limited    03470676
Fate Promotions Limited    05096129
Glance Creative Limited    10457829
Inflate Works Limited    08215914
Kalo Digital Limited    09648259
Letterspace Origination Limited    02928875
Prodoto Photographic Studios Limited    06821861
Suttons Envelopes Limited    06330926
TC Plastics (ME) Limited    07922854
The Syndicate Film Limited    09341240
Tryptych Design Limited    05678913
Unicorn Productions UK Limited    07010778
Vincent Press Limited    07328251
Wayfinder Creative Limited    10862908
Woburn Media Limited    03654815
 
Members Voluntary Liquidations
AD-Rail Metro Limited    10119510
Atom Paper Limited    09757234
Chameleon Studio Limited    04701608
Creative Broadcast Solutions Limited    04442058
Corinna Field Communications Limited    09845533
DTS Communications Limited    02748749
Face of Somerset Limited    09718449
GTM Textile Machinery Limited    05541815
Jordan Bullen Design Limited    11659752
Raysca Creative Limited    08926339
Stuff Product Design Ltd    07969123
The Mango Agency Limited    05216709
Little Did She Know Limited    08295165
M & G Designs Limited    09561699
Prepress Services Limited    06595203
Vicat Media Limited    07323803
 
Petitions to Wind Up
WV Industries UK Limited    07676530
 
LOGISTICS, TRANSPORT, VEHICLES AND ALLIED INDUSTRIES
Administrators Appointed
Pendle Coaches Limited    08546339
 
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
AE Rail Limited    09706688
Bristol Freight Limited    11221639
Cross Channel Carriers Limited    10452933
Earls Fleet Services Limited    11218559
Flatpack Assembly Services Limited    10986540
Flatpack Global (UK) Limited    11973663
KMAC Rail Services Limited    08664374
Natasha Motors Limited    09164514
New Rodley Motors Limited    07918673
Picton Motors Limited    11354284
Regent Transport Limited    10806929
Roll On Off Services Limited    03159676
The Vintage Caravan Workshop Limited    07674686
Yorkshire Plant Hire and Sales Limited    11749289
 
Liquidators Appointed
AFC Global Transport Limited    10544062
Alexander’s Self Storage Limited    06439470
Center Transport Limited    08096624
Compass Vehicle Logistics UK Limited    09532938
Cross Channel Carriers Limited    10452933
Earls Fleet Services Limited    11218559
Fast Despatch Logistics (Cardiff) Limited    11613206
J Hunnisett Rail Limited    10173886
Motor Bros Limited    12503553
Removals Worldwide Limited    05723869
RFL Classique Limited    09203151
Shaker 4 Transport Limited    11067331
Smartbus Limited    06276721
 
Members Voluntary Liquidations
Hand Picked Cars Limited    09518858
Holyrail Limited    06763042
Last Mile UK Logistics Finco Limited    11420254
MSR Supply Chain Limited    10906201
Stafford Space Limited    10317025
Storage Boost (Stafford) Limited    06414204
Westlink Storage & Shipping Company Limited    03037077
 
Petitions to Wind Up
Perrobin Logistics Limited    11539948
 
Winding up orders
KP Distribution Enterprise Limited    09740205
 
CONSTRUCTION, PROPERTY AND ALLIED INDUSTRIES
Administrators Appointed
Monument Paper Bag Company Limited (The)    00481099
The Fascia Division Limited    04319372
 
Compulsory Liquidators Appointed s 136
Heritage Design and Build (UK) Limited    03898871
 
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
Cartley Landscape Supplies Limited    11055416
Grand Construction And Building Services Limited    10470310
Henry Rowlands Construction Limited    05392569
Kinge Homes Limited    10518486
Living Space Construction (Herts) Limited    08962178
MMS Construction Limited    11095477
MSC Building Services Limited    08610531
Perfect Steel London Limited    08800679
South Coast Drainage & Plumbing Limited    11769584
Sutton Coldfield Construction Limited    07261372
Willow Design and Build Limited    11279374
 
Liquidators Appointed
Avebury Architectural Services Limited    09630012
Benavon Homes (Evesham) Limited    05561993
Charles J Hancock Limited    10985349
Elite Building Bromley Limited    10005845
Fewell Precision Limited    07174430
Finnoah Construction Limited    09464572
Focus Facades Limited    10440754
Harper & Sons Developments Limited    12290078
Longshaw Construction Limited    04009540
North West Construction UK Limited    02060487
T&T Construct Limited    11722734
Tim Halliwell Plumbing & Heating Limited    05887903
Trend Design & Build Limited    11114607
Viliamko Builders Limited    07252619
 
Members Voluntary Liquidations
Belfast Properties Limited    00661188
Castlebrook Homes Limited    09842477
Delaval Homes Limited    02432779
First Rate Plumbing And Heating Limited    04974599
HF Hughes & Son Limited    00367776
Higgin Homes Limited    10223542
 
Winding Up Dismissal
Mobile Homes Sales & Letting Limited    10567073
 
Winding up orders
Assegai Design and Build Limited    07685100
Gilb Construction Limited GILB    07123381
Kersfield Developments (Ensleigh South) Limited    09185224
 
HOSPITALITY, TRAVEL, EVENTS AND ALLIED INDUSTRIES
Administrators Appointed
Henbury Social Club & Institute Limited    IP17913R
 
Administrators Meetings Para 51
Baxter Hoare Travel Limited    00967736
 
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
A Nineteen Pub Company Limited    11448516
Aqua Brasserie Blackheath Limited    08523348
Artemis Leisure Limited    06237606
Bluedaze Limited    07018189
Dancing Fish Events Limited    07813170
Goa Hip Hop Festival Limited    11969204
Gold Star Global Events Limited    11068693
Jolly Fine Malt House Limited    07957702
Kings Catering North East Limited    09543346
Maestra Events Limited    09826384
Mercury Events Limited    08003000
Mercury Events Retail Limited    12941703
M Junction Limited    10925819
SA Food Stores Limited    10976928
Scott and Babs Woodfired Food Limited    09568398
SC Holiday Solutions Limited    08732843
Swan Pier Company Limited    05901281
Terry’s Restaurant Limited    12219785
The Bird In Hand Bromley Limited    08731576
The Crescent Hotels Limited    08557483
The Field Kitchen (UK) Limited    07457911
The Plough Inn Holford Limited    11573738
The Unit Fitness UK Limited    09730476
The Victoria Inn Ashburton Limited    10755497
Vivid Hospitality Solutions Limited    08658860
Zugers Bromborough Limited    11638610
 
Liquidators Appointed
AK & B Catering Limited    10724470
Ashmount Hospitality Limited    10686865
Beanbag Coffee Limited    09127302
Busy Bee Events Limited    07162716
Brunch Box Limited    12077623
Café Avenue Limited    11677589
Cali Juices Limited    11798166
Cambridge Pub Group Limited    10148077
Catering Business Solutions Limited    11691543
Chamberlains Restaurant Limited    04026407
Escape Inside And Out Limited    09253513
Farmhouse Pizzas Org (UK) Limited    10338176
Franklin Bar Limited    06936382
Goa Hip Hop Festival Limited    11969204
Half Moon Bay (Leisure) Limited    05222630
HN Events Limited    12340048
INV Project Limited    10203012
Isha Weddings Event Limited    10620329
Joes Burgers Limited    10804704
J Honny’s Restaurants Limited    11835720
Kirkpatrick Restaurants Limited    05354148
Keystone Entertainment Limited    11012334
Leicester Square (London) Hotel Limited    10615716
Lucky Crab Limited    10627298
Mad Hatters Tea Room and Bakery Limited    08407246
Music & Events Limited    12154362
Megna Restaurant Limited    04779005
MJB Events Limited    09977529
Nash Inns Limited    04913376
Promac Leisure Limited    05089308
SC Holiday Solutions Limited    08732843
Sival Hotels Limited    02009036
Southampton Nuffield Theatre Trust (The)    01711502
Sparkford Events Management Limited    10904063
Simple Leisure Limited    07086194
Spicy Chef Limited    11596213
Starlink Euro-UK Limited    10294235
The Victoria Inn Ashburton Limited    10755497
True Italian Restaurants Limited    10926867
Toms Event Bars Limited    10440036
Top Event Limited    04380494
Top Choice Holidays Limited    04455228
Victory House (London) Hotel Limited    09162585
Wardour Restaurants Limited    11871804
Winebuyers Limited    09816569
Woodend Bar Limited    09515790
 
Members Voluntary Liquidations
International Airline Passengers association (EAME) Limited    02577549
Knowle Grange Leisure Limited    04594639
Mole and Chicken Inn LLP    OC422418
RSA Hotels Limited    08100238
SOF-10 Starlight 13 Operations Limited    09300955
The Executive Club International Limited    01455887
 
RETAIL, WHOLESALE AND ALLIED INDUSTRIES
Administrators Appointed
AW Retail Limited    06879213
Fresh @ Burcot Garden Centre Limited    05397035
Pink Parasol Limited    10227174
TL 2021 Limited    04038659
 
Compulsory Liquidators Appointed s 136
HW Retail Limited    08269584
 
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
Bespoke Revolution Ltd    11744870
Cali Juices Limited    11798166
Connoisseurs Fine Foods Limited    04921192
Cotswold Creative LIving Limited    09055064
Dashi (Bath) Limited    09513635
D&S Cosmetics Limited    11491623
Final Mile 2021 Limited Formerly GBA Final Mile Ltd    10670190

Humber Fish Company Limited    11289481
JDA Fashion Limited    11613289
Keating Supercars Limited    06073631
Match Bags UK Limited    08531263
Match Skin Salon Limited    10932683
Nyama Butcher Limited    07157729
R.J Leigh Limited    07280678
Rosario Tailoring Ltd    06750329
 
Liquidators Appointed
Continental Food London Limited    12012985
Foreva Young Limited    10398204
Garden Fruit Vegetable Ltd    09027977
Kellsway Convenience Store Limited    10765933
Total FX Fireworks Limited    07703164
 
Members Voluntary Liquidations
Bristol Meat Trader Limited    04973191
J R Cowan Limited    00841481
 
Winding Up Dismissal
Prees Village Stores Limited    08675276
 
Winding up orders
Silverlane Estate Limited    11219667
 
VARIOUS INDUSTRIES
 
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
Durham Steel Erection Limited    09179294
Keating Supercars Limited    06073631
Pinnacle Athletics Limited    11774423
Swimming Pool Design and Management Limited    05482917
 
Liquidators Appointed
Clever Cloggs Childcare Limited    11193559
Concept Bathrooms Limited    07426234
Custom Creation Paints Limited    09444897
Bustagut Recruitment Limited    06116009
Grange Mill Energy Centre Limited    11685330
Oxxtem Oncology Limited    10028329
Pickering estate Agents Limited    07412628
Premier Hairdressing (Nottingham) Limited    11012825
Priory Homes (East) Limited    07612601
Purple Pelican Hair Limited    09890248
The Vintage Caravan Workshop Limited    07674686
Wigan Football Company Limited    03477413
 
Members Voluntary Liquidations
B&HT Engineering Limited    11390214
Carrotte Process Engineering Limited    06369982
Marsh Farm Limited    03054184
Northern Education Associates Limited    03964217
PA Restructuring Limited    07616432
Patel Medical Services Limited    06082117
Perfect Smile Orthodontics Limited    08346864
Strategies For Education (S4ED) Limited    04489524
Westfield Recycling Limited    05051050
Wold Egg Supply Company Limited    02047222
 
Types of Insolvency
Administration
Administration applies to limited companies and partnerships and is intended to get the company out of trouble and trading again if possible. Administrators can be appointed to a company that is unable, or is likely to become unable, to pay its debts. They can be appointed by the courts (on application from a creditor, directors or partners), the holder of a qualifying floating charge over the assets of the business, or the company or its directors. An administrator's primary goal is to rescue the company as a going concern. If this isn't possible, the administrator will try to get a better result for the creditors than would be possible if the company was wound up. If neither of these is possible, the administrator will sell the company's property to make at least a partial payment to one or more secured or preferential creditors, such as employees or the bank.
Administrators Meetings Para 51
This statement by the administrator of his proposals must be accompanied by an invitation to an initial creditors' meeting (Sch B1, para 51(1)).
Bankruptcy
This can only apply to individuals (including sole traders and individual members of a partnership). Bankruptcy petitions may be presented to the court by the individual, by creditors who are owed £750 or more, or by the supervisor of an individual voluntary arrangement. A bankruptcy order is made by the court.
Company Voluntary Arrangement (CVA)
A company comes to an arrangement with its creditors to pay the debts in full or in part over time. A CVA begins with the company (or its adviser) drafting a formal proposal at a Creditors' Meeting to pay part or all of the debts. If the proposal is accepted by the creditors, the arrangement will become legally binding and the directors will retain control of the company.
Compulsory Liquidation
This is the winding up of a company or a partnership by a court order (a winding up order). A petition is normally presented to the court by a creditor stating that he or she is owed a sum of money by the company and that the company cannot pay.
The Official Receiver becomes liquidator when the order is made but an Insolvency Practitioner will be appointed to take over if the company has significant assets. The liquidator's role is to realise the company's assets, pay all the fees and charges arising from the liquidation, and pay the creditors as far as funds allow in a strict order of priority.
Compulsory Liquidators Appointed S 136
When a winding-up order has been made, the Official Receiver is initially appointed as liquidator (section 136, IA 1986). The company's creditors and contributories may appoint another individual, who must be a registered insolvency practitioner, to act as liquidator (section 139, IA 1986). More than one liquidator can be appointed to act jointly.
Creditors' Voluntary Liquidation
Here the shareholders pass a resolution to wind the company up without the need for a court order. A Creditors' Meeting is held to nominate the appointment of a liquidator and consider a statement of affairs. Creditors can appoint a committee to work with the liquidator, whose role is to realise the company's assets, pay all the fees and charges arising from the liquidation, and pay the creditors as far as funds allow in a strict order of priority.
Creditors' Voluntary Liquidation Deemed in Consent Meeting
Creditors are now 'deemed to have consented' to a decision or resolution if 10% of creditors (by value) have not objected to it. In other words, if objections are not received by the specified decision date, creditors are 'deemed to have consented' to the decision or resolution.
Individual Voluntary Arrangement (IVA)
An individual comes to an arrangement with creditors to pay his/her debts in full or in part over time as an alternative to bankruptcy. The arrangement is set up by a licensed Insolvency Practitioner who will put it to a meeting of creditors. If the proposal is accepted at the meeting, the agreement reached with the creditors will be legally binding. An Interim Order is sometimes issued by a court and will immediately protect the debtor from any legal action by creditors.
Petitions to Wind Up
A winding up petition is a legal notice put forward to the court by a creditor. The application, in effect, asks the court to liquidate the company as they believe the company is insolvent. Proceeds of the liquidation can be used to pay back creditors.

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